Older Adults Aren’t Children: Why repurposing child-focused tools falls short

By Becky Ross, Head of Marketing, Carefull

Products to help parents oversee their children’s financial transactions have been around for years. Only recently has there been a push to develop platforms that credit unions and families can use to protect another vulnerable population: older adults.

Unfortunately, in many cases, these new offerings are simply a rebranding of products developed to put guardrails around children. They tack on terms such as “senior” or “silver,” but the platforms aren’t custom-built to address the unique needs of older adults. Older adults aren’t children, and their financial risks, behaviors, and support systems require tailored solutions.

That’s why credit unions can’t rely on a one-size-fits-all approach. Protecting the finances of older adults and supporting coordination with their trusted family members requires technology that is created specifically for seniors to help offer protection, while also maintaining autonomy, respect, and independence. Just as importantly, it needs to be something older adults actually want to use.

Limits of Tools Designed for Children

Financial tools built for children typically focus on giving parents control over their kids’ spending. Often, the goal is to slowly help kids learn healthy financial habits in a secure environment by limiting their access – which is a perfectly fine strategy for kids.

But older adults face an entirely different set of risks – ones that require a different kind of protection. Financial exploitation and cognitive decline are the most pressing threats. Adults 60 and older lose an estimated $61.5 billion annually to fraud and scams, according to the Federal Trade Commission. The risk of exploitation is even greater for those with dementia. Plus, numerous studies have linked cognitive decline with money mismanagement, which puts financial well-being at further risk.

One-size-fits-all tools also overlook older adults’ desire to remain independent. A survey by Fidelity Investments found that three quarters of older adults say it’s very important to maintain their ability to manage day-to-day finances. They want protection, but not at the cost of their autonomy.

Balancing Protection With Autonomy

Credit unions need a financial safety platform for older members that is specifically designed to help detect fraud, simplify financial management, and offer support if cognitive decline occurs. But it can’t be overbearing or intrusive. This can be done with a product that is intuitive, accessible, and flexible enough to adapt to the individual needs of seniors.

Smart, Comprehensive Monitoring

Older adults have complex financial lives with multiple accounts across several institutions and platforms. To protect them, monitoring must be comprehensive. It can’t be limited to just one checking account or one debit card. Full financial monitoring requires 24/7 coverage of all checking, savings, investment, and credit card accounts older adults have as well as their credit reports, identity, and home title.

The breadth of oversight alone isn’t enough. Monitoring for older adults also needs to be smart. It can’t simply flag transactions. It must use behavioral analytics powered by AI to spot subtle changes in how older adults normally interact with their accounts. Machine learning that intelligently detects out-of-the-ordinary transactions – when combined with known scam patterns targeting older adults – can reveal the earliest signs of fraud. Early intervention for cognitive decline is possible when families and institutions identify warning signs and patterns in financial behavior, such as late or duplicate payments, missed bills, credit score drops, or altered spending patterns.

Smart, Customizable Alerts

Monitoring must be accompanied by real-time alerts that are smart, specific, and actionable. Using known patterns of behavior for the specific individual, these alerts can notify an older adult – or a trusted family member or caregiver – if an unusual transaction is detected. For example, if seniors make an unexpected large purchase or a transfer to an unfamiliar account, a notification could be sent to alert them and provide them with action steps to protect themselves.

However, the challenge is ensuring that these alerts don’t feel punitive or overly controlling. The goal should be to offer peace of mind by flagging potential fraud and money mistakes without creating an environment where the older adult feels constantly monitored. A smart solution gives seniors the ability to adjust alert settings according to their preferences, ensuring they are benefitting from the safety net of monitoring by only being notified about activity that truly requires their attention.

A Secure Financial Support Network

Credit unions need a financial safety platform that allows older adults to maintain control over their finances while ensuring that a trusted individual is available to step in when needed. This can be done with a feature that allows for trusted contacts to be named and granted view-only access.

This provides an opportunity for older adults to identify the people who will be their first line of defense against exploitation and their support system if cognitive decline occurs. In turn, those trusted contacts with view-only access can help spot and stop small issues before they become big problems.

Integrated Educational Resources

Incorporating educational tools into a financial safety platform can help seniors learn how to recognize common scams, avoid fraud, and protect their finances. Timely articles, scam alerts, and resources should be front and center in an account dashboard, email alerts, and newsletters. This integrated approach to consumer education keeps older adults aware of the latest threats to help them avoid becoming victims.

New Developments in AgeTech

As credit unions explore solutions to better protect their most vulnerable members, older adults, it’s critical to recognize that not all tools are created equal. Older adults have distinct financial behaviors, vulnerabilities, and values, and they deserve platforms purpose-built for their needs – not simply rebranded versions of tools originally designed for children. This is why credit unions are turning to platforms like Carefull, which was built specifically to address the financial risks older adults face. Solutions must be rooted in a deep understanding of aging, not retrofitted with new labels. That means balancing protection with independence, enabling support without intrusion, and using smart technology that’s intuitive, respectful, and relevant.

Connect with Carefull to learn more.